RIM shares take a hit after UBS downgrade

The Associated Press

Shares of Research in Motion Ltd. took a hit Monday after a UBS analyst downgraded the BlackBerry smart phone maker, saying that while the current quarter looks to be going well, the stock is nearing his target price.

Analyst Phillip Huang lowered his rating on RIM to "Neutral" from "Buy" and cut his target price to $88 from $90. He cited the stock's current value as the reason for the downgrade.

The Canadian company's U.S.-traded shares fell $3.97, or 4.8 percent, to $79.64 in early afternoon trading Monday. In the past 52 weeks, the stock has changed hands between $35.05 and $135.

The analyst also said that a potential launch by Verizon Wireless of a data-only Apple device later this year "may raise some concern that an iPhone may be coming" by virtue of the fact that Apple Inc. and Verizon Wireless would then have a direct business relationship.

The iPhone, a huge BlackBerry competitor, is currently only available from AT&T Inc. as a U.S. service provider.